There are few people like Donald J. Trump. One mention of his name will bring a life of luxury, internet memes, and controversy to mind.
Over the years, Trump has been involved in many different industries, from real estate and entertainment to politics — the latter is a subject we will not touch on in this article.
Instead, we'll take a deep dive into the side of Trump, almost forgotten amid his wild political career: he is a successful businessman and investor.
Trump Entertainment Resorts, Trump Airlines, Trump Hotels & Casino Resorts, and Trump National Golf Club—his long list of business ventures in the hospitality industry is impressive.
Of course, not all of Trump's efforts end in triumph. He has famously spent years attempting to trademark "You're Fired", the catchy phrase from The Apprentice, but to no avail—still, all the more reasons to admire the billionaire's perseverance.
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There's no denying that his investment strategy in the real estate market offers valuable insights for anyone looking to achieve greatness.
The Early Years
Born in Queens, New York, in 1946, Trump grew up in a wealthy family with a strong work ethic. As the son of a prosperous real estate developer, he was exposed to the business at an early age.
Despite a privileged upbringing, Trump faced challenges in his early years, including being sent to military school at 13. He then studied economics at Fordham University and the University of Pennsylvania's Wharton School.
Trump's academic achievements and opportunities set the stage for his future success. Still, his family culture and work ethic truly shaped him into the person he is today.
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He gave a strong focus over being recognized as a wealthy businessman, he appeared as much as he could on the media, and not just business specialised segments, he was everywhere! From news stations, to talk shows, he sponsored the biggest beauty pageant and made special appearances in films… who can forget his cameo in Home Alone 2? He even had his television show "The Apprentice".
Building wealth from wealth
Strongly criticised of being a nepotist, after giving White House jobs to most of his close family, in an interview with Larry King he recognized he likes it, when asked about Ivanka (his daughter) taking the place of a participant in The Apprentice reality TV Show.
"I like nepotism, you can take care of your kids".
- Donald Trump
Wikimedia Commons
Although the host of the reality TV show was brought from a wealthy family, he reserves recognition for building upon his family's money.
According to Forbes Magazine, the joint amount of his and his father's fortune was estimated at $200 million in 1968, and after 46 years it summed up to $4.5 billion.
Only after hard work and determination Trump built his empire and became a prominent figure in the world of real estate and, later, the hospitality and entertainment industries.
The Six Business Principles That Will Lead You to Triumph
Even if you're one of Trump's many haters, you might find some value in his timeless ideas about running a business in this modern age.
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Think Big
The idea behind this principle is simple: don't limit yourself or your ideas; aim high and strive to reach your goals. "I also protect myself by being flexible. I never get too attached to one deal or one approach," he says in his 1987 book, Trump: The Art of the Deal.
Confidence is the key to successful negotiations.
He thinks he's powerful. For example, he tweeted that "trade wars are easy to win" (meaning the other party will lose). When you show a dominant power position, other parties will avoid negotiations.
Don't be afraid to let people underestimate you.
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The last time people doubted Trump, he won the election. Calling him names won't stop him from working without fanfare and building a solid foundation. This applies to both business and politics. Take a page from Trump's book and prove your detractors wrong.
Never leave yourself out.
Trump routinely declared bankruptcy for his businesses at least four times: Trump's Taj Mahal in 1991, Trump Plaza in 1992, Trump Hotels and Casino Resorts in 2004, and Trump Entertainment Resorts in 2009.
But get this: He has never declared bankruptcy for himself.
With this savvy maneuver, he avoided ruining his finances and is now a billionaire, despite widespread predictions to the contrary.
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No one will ever like everything you sell or do.
Trump knows that his name brand has always been about luxury, a symbol of power and wealth, and it tends to draw people with the same status.
So, figure out your target market and crowd, and focus on giving them the best product or service. You will only succeed if you try to please everyone with your name brand.
Only spend what you need to.
"I believe in spending what you have to… But I also believe in not spending more than you should."
-Donald Trump
When we invest, we take risks that we can't control. But we can always do something about the cost.
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One strategy for doing so is to forego the services of a broker in favor of opening a low-cost brokerage account.
The Not-So-Great Escape
To nobody's surprise, Trump has found his way out of many sticky situations.
Trump has used several tactics to avoid paying taxes or getting other legal benefits. One of these is the use of loopholes created by bankruptcy laws.
Trump often used bankruptcy laws to restructure debt and renegotiate contracts, allowing him to keep ownership of his businesses while avoiding debt payments.
This tactic was employed when he filed for Chapter 11 bankruptcy for the Taj Mahal Casino in Atlantic City in 1991.
These tactics were seen as controversial and led to numerous lawsuits and investigations into Trump's finances.
In Conclusion: Always Think and Ask Before You Act
Trump's way of doing business is that there are good and bad lessons to be learned.
On the one hand, his bold and unapologetic approach has helped him make successful investments and financial decisions.
On the other hand, his questionable ethics and lack of transparency have led to numerous controversies and legal issues.
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Don't let his dog-eat-dog mentality affect your beliefs.
Always put morality and accountability first while handling money, primarily when investing.
Although he has done some things we wouldn't necessarily recommend, he has also come out on top many times. So, if you want to make it in business, study Trump's triumphs and failures.
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